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Ontario Applies 25% Surcharge on Electricity Exports to the United States

Effective March 10, the Ontario government has applied a 25 per cent surcharge on all electricity exports to the United States as part of the province’s initial suite of retaliatory measures to U.S. tariffs on Canada.

“This surcharge will affect 1.5 million homes and businesses in Michigan, Minnesota and New York, costing up to $400,000 every day the surcharge remains in place,” a news release from the Canadian province said.

Starting March 10, new market rules are in effect that require any generator selling electricity to the U.S. to add a 25 per cent surcharge valued at $10 per megawatt-hour (Mwh) to the cost of power.

“At this level, the surcharge will generate revenue of $300,000 to $400,000 per day, which will be used to support Ontario workers, families and businesses,” the news release said.

The government “will use every tool at its disposal to protect Ontario workers and families from President Trump’s tariffs, including increasing this surcharge at any time or, if the U.S. escalates, cutting off electricity exports to the U.S. completely.”

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